A Company Discovers That Its Cost of Goods Sold Is

question 112

True/False

A company discovers that its Cost of goods sold is understated by an insignificant amount.They do not need to correct the error because of the materiality concept.

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Definitions:

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time.

Unauthorized Signer

An individual who signs a document or agreement without the legal authority or permission to do so.

Ratified

Confirms or approves an action, document, or agreement officially, making it valid and enforceable.

Secondary Indorsers' Liability

Refers to the legal responsibility that falls on endorsers who sign a document or contract after the primary signer, particularly in financial transactions.